Steel Stock in Focus After Commencing First Defence Export Order Worth $6 Million

Synopsis: Shares of the Manufacturing company came into focus after the company announced a key update from its defence business. Its subsidiary has started its first overseas shipment related to a defence order, marking a step forward in the company’s efforts to enter global defence supply chains and expand its presence in international markets. 

The shares of this small cap company  majorly engaged in the business of manufacturing and selling engineering products such as sheets, pipes, engineering structures, fabricated structures, forgings, and automobile tubes were in focus after announcing about the commencement of defence export order 

With the market capitalization of Rs. 3365 Crores, the shares of Goodluck India Ltd were trading at around Rs. 1014 per share, which is 25 percent discount from its 52 weeks high of Rs. 1353 per share and is trading at a P/E of 20 where as industry P/E stands at 17.8 

News

Goodluck India Limited stated that its subsidiary, Goodluck Defence & Aerospace Limited, has commenced the first-ever dispatch of 155 mm heavy calibre empty shells from its plant in Uttar Pradesh for export in accordance with an export order worth $6 million. The first dispatch of this order was flagged off by Goodluck Defence & Aerospace Limited’s Chairman and Managing Director, Mahesh Chandra Garg. 

According to Goodluck India Limited, this is a significant milestone in a series of steps that started with setting up a separate facility for this type of shell, developing infrastructure, and obtaining technical validations and manufacturers approvals to operate in this space. Once this approval was obtained, Goodluck Defence & Aerospace Limited obtained its first export order, completed internal and regulatory approvals necessary for executing this order, and is now commencing execution. Goodluck India Limited stated that this is a significant milestone in transitioning from developing capabilities to executing in the global defence supply chain. 

Financials

Goodluck India Limited  majorly engaged in the business of manufacturing and selling engineering products such as sheets, pipes, engineering structures, fabricated structures, forgings, and automobile tubes. The company is into various business segments which include Defence & Aerospace, Precision Pipes & Automobile Tube and Engineering Structures. CR sheet and pipes has the manufacturing capacity of 2,15,000 mtpa, Precision pipes and Automobile has 1,70,000, forging and engineering structure has 30,000 and 85,000 mtpa respectively. 

Year on Year analysis:  Revenue from Operations has increased from Rs. 942 Croes to Rs. 1037Crores, up 10 percent. Operating profit has increased from Rs. 80 crores to Rs. 101 Crores, up 26 percent and net profit has increased from Rs. 41 Crores to Rs. 44 Crores, up 7.3 percent 

Quarter on Quarter analysis: Revenue from Operations has increased from Rs. 991 Croes to Rs. 1037 Crores, up 4.6 percent. Operating profit has increased from Rs. 92 crores to Rs. 101 Crores, up 9.7 percent and net profit has increased from Rs. 43 Crores to Rs. 44 Crores, up 2.3 percent 

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